11.14.14: On the Road Again … This Time to Lubbock, TX!

“Our mission at ValueXpress, particularly for first-time CMBS conduit loan borrowers, is to make a complex loan process as painless as possible,” explained Michael D. Sneden, Executive Vice President at ValueXpress. “This enables borrowers to keep up with the fast-paced underwriting and closing process to get their loans closed within 45 days. Quick closings reduce the risk of interest-rate increases, help meet time-sensitive payoff dates and get cash-out proceeds into borrowers’ hands quickly for reinvestment.”

“The ability to achieve these goals is challenged by portfolio transactions. The work multiplies with each additional asset, but the timeline of 45 days remains the same,” commented Jay Bhakta, Senior Loan Originator at the ValueXpress Jackson, Mississippi office and 15-year ValueXpress veteran. “That is why we always go on site to complete the diligence for portfolio transactions.”

The most recent foray for Jay and Mike was to Lubbock, Texas, to complete the diligence on a $21-million, four-property hotel portfolio for Henry Patel. Henry fit the mold of a typical ValueXpress CMBS conduit borrower. First-time CMBS borrower? Check. Involved with other businesses that stretch resources? Check. A desire for a quick closing? Check.

“Jay and I spent a week with Henry and his team. We worked 10- to 12-hours days, and by the time we left for the airport on Friday, the diligence checklist was 95% complete,” commented Sneden. “We ordered surveys, requested comfort letters, filled out Wells Fargo Cash Management forms and got property insurance squared away. And that was in addition to the standard 50 items on the property checklist. Importantly, we were able to get 5 years of monthly operating data for all 4 properties (20 P&Ls) to the appraiser on Thursday so he could meet the delivery timetable.”

“We had a great time and Henry was very appreciative,” said Jay. “I know this because Henry kept the refrigerator stocked with beer all week!”

 

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This entry was posted in CMBS, CMBS Conduit Loans, Commercial Lending, Commercial Real Estate Loans, Michael D. Sneden, News & Recent Closings, The Banker's Mortgage Conduit, Valuexpress and tagged , , , , , , , . Bookmark the permalink.

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